Financial Performance - For the year ended December 31, 2021, the company reported revenue of RMB 267,498 thousand, a decrease of 60.4% from RMB 676,161 thousand in 2020[13] - Gross profit for the same period was RMB 80,259 thousand, down 57.9% from RMB 190,611 thousand in 2020[13] - The company's profit before tax fell by 87.5% to RMB 11,716 thousand from RMB 94,046 thousand in 2020[13] - Net profit attributable to equity holders of the parent was RMB 4,542 thousand, a significant decline of 94.2% compared to RMB 78,295 thousand in the previous year[13] - Total assets as of December 31, 2021, were RMB 3,358,341 thousand, a decrease of 2.7% from RMB 3,452,771 thousand in 2020[13] - The company's equity attributable to equity holders increased slightly by 2.0% to RMB 1,016,282 thousand from RMB 995,931 thousand in 2020[13] - The gross margin improved to 30.0% in 2021 from 28.2% in 2020[13] - The net profit margin decreased to 1.7% in 2021 from 11.6% in 2020[13] - The total revenue achieved by the company during the reporting period was RMB 267.5 million, with a net profit attributable to the parent company of RMB 4.5 million; the gross profit margin increased by 1.8 percentage points to 30.0%[36] Operational Strategy - The group adopted a prudent approach by slowing down project commencement and construction progress to strengthen cash flow, which led to a decline in performance[21] - The group emphasizes maintaining a stable cash flow, appropriate scale, and reasonable profit margins as part of its operational strategy[26] - The company is actively optimizing its management model and adjusting its operational strategies to adapt to the economic uncertainties caused by the COVID-19 pandemic[36] - The group plans to transition from PPP projects to Engineering Procurement Construction (EPC) models, including EPC+Finance and EPC+Operation, to optimize asset allocation and ensure sustainable development[48] Market Trends - The overall market for new orders in the landscaping industry remains low, with a decrease in new orders due to the impact of previous PPP project contracts[25] - The Chinese urban landscaping market is projected to grow from RMB 215.8 billion in 2020 to RMB 426.6 billion by 2027, representing a compound annual growth rate (CAGR) of 11.01% from 2021 to 2027[34] - The urban landscape design industry in China is expected to maintain an average growth rate of 7%, with the market size projected to reach RMB 350 billion in 2022[34] Environmental Initiatives - The company plans to accelerate its carbon reduction efforts in line with the "30-60 targets" and continue advocating for energy-saving and environmentally friendly business practices[29] - The company aims to achieve carbon peak and reduction targets by 2030 and 2060, respectively, with a plan to gradually reduce total greenhouse gas emission density over the next five years, using 2021 as the baseline year[181] - The company is committed to gradually reducing air pollutant emissions density over the next five years, using 2021 as the baseline year[176] - The company has implemented enhanced site management to minimize environmental impacts during construction projects[174] - The company focuses on planting a large number of green plants in its horticultural projects, which helps absorb carbon dioxide, although these are not accounted for in the company's greenhouse gas emissions reduction[180] Governance and Compliance - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring a balanced governance structure[56] - The company has adopted the corporate governance code and has complied with all applicable provisions during the reporting period, except for specific deviations noted in the report[50] - The independent non-executive directors have confirmed their independence throughout the reporting period, contributing to high standards of compliance and governance[60] - The company will regularly review the management structure and consider separating the roles of Chairman and CEO if necessary to maintain effective governance[59] - The board retains final decision-making authority on significant matters, including policies, strategies, budgets, internal controls, risk management, and major transactions[65] Risk Management - The company's risk management and internal control system is based on its "Risk Management Internal Control System" and involves participation from the board, management, and employees[110] - The risk management objectives include identifying potential impacts on the company and providing reasonable assurance for achieving business goals, including effective resource use and compliance with regulations[113] - Management conducts regular internal control assessments to identify risks affecting the group's operations and financial processes, ensuring compliance with control policies[117] - The internal auditor independently reviews the adequacy and effectiveness of the risk management and internal control systems, reporting findings to the audit committee[118] ESG Performance - The ESG report covers the company's management policies and strategies related to environmental, social, and governance (ESG) practices for the year 2021[146] - The company is committed to continuously collecting relevant ESG data to improve the accuracy and comprehensiveness of its ESG data collection system[147] - The company has established an ESG governance framework led by the board, with a dedicated working group responsible for identifying and managing significant ESG issues[153] - Stakeholder engagement includes communication with government, customers, suppliers, employees, and the community to align long-term development directions[160] Emission Reductions - Total greenhouse gas emissions (Scope 1 and 2) decreased from 646.00 tons in 2020 to 406.02 tons in 2021, representing a reduction of approximately 37.2%[182] - Total energy consumption decreased from 1,123,169.00 kWh in 2020 to 617,123.56 kWh in 2021, a reduction of approximately 45%[195] - Total water consumption decreased significantly from 64,212.00 tons in 2020 to 25,902.33 tons in 2021, a reduction of approximately 59.6%[199] - The company has not generated any hazardous waste during the reporting period and has not set related targets[188]
中国绿地博大绿泽(01253) - 2021 - 年度财报